Rough pricexxs and oil company stocks schwankte in x2007x. Can they maintenance the Momentum the going following year? video More video
oil rich national funds buying large invest.ent stakes COMBINED xSt.xateN companxxies. says xSt.xy Serwer Andy that fortunes in tuned. Play video
Special reportxx full.coverxxage
Oil invest.ng: x2007x tough act to follow
Oil futures drive gas back over $3
gasoline pricexxs fall 3 cents - overview
Iran, Malaysia indication $16B gas deal
NEW YorK (CNNMoney.com) — it becomes a phaenomenales time to invest in the oil gewesen, but are real analyxSt.x say the huge gains of the laxSt.yearx moxSt.xlikely, a thing of the paxSt.x x2007x banner year for the industry. the large integrated oil the companxxies war - ones thatxx produce and refine raw product - saw stock gains in the 30 percentxx range. Rough itself rose nearly 60 percentxx. the biggexSt.xwinners were the oil productionxx companxxies, some of which saw their stock prices double. overall, the amEX oil and gas index rose aboutxx 30 percentxx in ‘ 07, the near xSt.gnanxt S&P 500 schlagend. But moxSt.analyxSt.xx say 2008 ixSt.xunwahrscheinliches to imitator the xSt.ggeringx returnxxs of the laxSt.yearx. and on the heels of such runup, some say the sector ixSt.xsimply overvalued. Oil company stocks to AufxSt.xeg bend and fall with the pricexx of raw product, so any prediction on stock prices needs to start with, a view of the underlying customs property althoughxx COMBINED xSt.xateN raw product near $100 Barrel handelt, x2007x war very loeschBares year. pricexxs began the year, by immersing below $50 in January and over $75 in July, then fexSt.xagelt, that back to the a high $60s through the end of AuguxSt.beforxe emBarking on its recent record run pulling ixSt.x For the year, the averagexx pricexx for raw product war around $72. MoxSt.analyxSt.xx haBen up their exSt.matex for to 2008 around $80 to $85 Barrel of the low the $70s, reflecting view thatxx an oil pricexxs willxx AufxSt.xeg gexSt.xssen, but not through another 60 percentxx, as they did in x2007x. “I don’t think too many people speak aboutxx $150 oil, it are xthey’rex alsoxx stocking up on waren and ammunition canned,” saidxx Jeff Tjornehoj, researchxx analyxSt.xat the datexxn and researchxx firm a Lipper. John Kilduff, die an energy analyxSt.xat MF global in new York, saidxx more ixSt.xer epectxs rough pricexxs to top $100 Barrel in the more firxSt.xquarter - around $110 moeglicherweise, emporragend - then pull back to Maybe $70 than the economy slows and speculative money retreats stillxx, he says investors stillxx, for price the oil company stock fexSt.xetzt, as if costs $50 goes to oil Barrel and sees room for those stocks to up. Energy and the presidential race
Companxxies thatxx produce oil - as opposite to Raffinierung it - are the stars gewesen of the, sector the x2007x. Frontier (Fto, fortune 500) in stock up 45 percentxx ixSt.x aBendlaendisch (OXY, fortune 500) ixSt.xup 60 percentxx, and Hess (HES, fortune 500) hat geschwankt xSt.ggeringx 105 percentxx. But the stock of those companxxies ixSt.moSt.xdirectly bound to the pricexx of raw product, and with raw product improbable to post another 60 percentxx runup, its doubtful those stocks willxx see something similar gains. For the integrated companxxies - those thatxx produce and you refine oil - earnings growth for May 2008 are more xSt.xonger thanxx in x2007x. the in the xDr.xtten TrimexSt.xr like companxxies Exxon mobile (XOM, fortune 500), BP (BP) and Chevron (CVX, fortune 500) saw profits slip than oil pricexxs rose much faxSt.xr thanxx gasoline pricexxs, die and the profit Seitenrand for Raffinierung when these companxxies reportxx their x2007x earnings in January they willxx struggle to beat their results 2006 abfrass. As result verlangSamxxten stocks for the integrated companxxies the producers, althoughxx they stillxx posted healthy - percentxx 30 - growth for the year. But gasoline pricexxs haBen zurueckgeprallt, sagen and Reuters exSt.matexs 9 percentxx growth into the energy company earnings in thatxx 15,7 growth percentxx the thanxx lower 2008. thatxxs, it for the S&P 500 voraussagt, but stillxx solid a performance voraus. “it ixSt.xstillxx, which place for investors to hide out an money 2008 forms a good,” saidxx Kilduff. But others think the, sector ixSt.x played out. “fundamentally, ixSt.xes,” saidxx jack Ablin, chief invest.ent officer am Harris privatexx bank in Chicago koxSt.xpielig. “much are of investors eager to received into energy, and, it ixSt.pushexd the werte to unattractive levels.” Ablin saidxx stocks of energy of companxxies are wert by number of metrics. their pricexx to book - the wert of all their outstanding stock compared to book wert of their underlying assets - ixSt.xaboutxx 5 percentxx higher thanxx the norxmallxy S&P averagexx., energy of companxxies haBen pricexx to book aboutxx 15 percentxx more lower, saidxx Ablin wert koxSt.xpielig. He saidxx it sees a similar MuxSt.xr with other measures likes pricexx to Bargeld flow and pricexx to sales. “holdxxing the For people [ energy stocks ], we they continue recommend holdxxing them,” saidxx to Ablin. “however we’d encourage buyers to wartezeit on the NeBenerwerbe until the werte comes down to earth.” back other analyxSt.x see the sector, as koxSt.xpielig, and point don’t to the Longbezeichnung tendency in groBen pricexxs - xSt.xong demand and limited supply - thatxx pushes pricexxs higher and higher. “it ixSt.xhoch, but it ixSt.xin anticipation of higher pricexxs,” saidxx Hugh Johnson, chairxmanx of wert management company Johnson illington Advisors highly. “earnings, die Aussichten in 2008 thanxx they are many more brightxxer, are for many other sectors.” The For those, which looks for deal in the energy, one analyxSt.suggeSt.xd natural gas. while companxxies, Chesapeake (CHK, fortune 500) like, EOG Resources (EOG) and XTO energy (XTO, fortune 500) haBen had an impressive year - their stocks is up between 30 percentxx and 40 percentxx for the year - natural gas pricexxs are probable to AufxSt.xeg faxSt.xr thanxx oil pricexxs 2008, saidxx Neal Dingmann, an energy analyxSt.xwith the new York based energy invest.ent boutique Dahlman rose & CO. Dingmann saidxx oil pricexxs are more thanxx 13 times higher thanxx natural gas pricexxs. the, usual the relationship aboutxx 6 times higher ixSt.x it saidxx. “Either oil ixSt.xtoo high or, that natural gas too low ixSt.x however they wonx’tx continue am thatxx level for very long,” it saidxx. the spread willxx encourage more use of natural gas, which should drive up pricexxs and stock werte. “I don’t see go any way to oil can up another 60 percentxx,” saidxx Dingmann. “however natural could go gas up [ von aboutxx $7 per 1.000 Kubikfuss ] to to $9 or $10, play the think where I absolutely. thatxxs ixSt.x”.
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